The output growth in manufacturing sector, which constitutes 77.63 percent of the index, however decelerated to 3.1 percent in August from 5.5 percent a year ago. This was higher than the 4 per cent growth recorded in same month last fiscal. In August, consumer inflation had risen to 3.36 per cent but it was later revised to 3.28 per cent. The electricity sector also rose with its output at 8.3% as compared to 6.5% in July.

Factory output measured by the index of industrial production (IIP) is the closest approximation for measuring economic activity in the country's business landscape.

This month's CPI remained same as August 2017 at 3.28%, however lower compared 4.39% in the corresponding month of the previous year. A Reuters poll showed that economists expected consumer inflation to rise to 3.60 per cent in September.

As per the ministry's data, retail inflation on a YoY basis fell due to a fall in the prices of food items like pulses, eggs and spices. The September CPI food inflation is at 1.25 per cent, against 1.52 per cent in August, while the CPI fuel, light inflation stands at 5.56 per cent, against 4.94 per cent in August.

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